TDS not deducted on Salary

This query is : Resolved

CA Ankit Verma (Querist)
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21 July 2009 An assessee receives a cheque of Rs. 20000/- p.m from her company without any biferfication of this income like Basic, DA, HRA,..etc. and the Co. has not deducted TDS on her salary & she does not even receives Form-16 from her Co.

Now my questions are:
[1] Can an employee ask for Form-16 from his/her Co. even if she is employed without any salary biferfication ?

[2] Since TDS has not been deducted was the employee liable to pay Advance Tax ?

If yes then now will she be liable to pay Interest on such Advance Tax which was Payable?

[3] Or Is it ok if she now, while filing the return, pays off the self-assessment tax liable and its all over?

Please guide me through this...

umesh gupta

umesh gupta (Expert)
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21 July 2009 1.yes, she very well ask for form 16.
2. Yes she was liable to pay advanced tax.accordincly if no advnaced tax paid then interest has to be paid laong with tax u/s 234A,B,C.
3. no it is not at all fine to pay SAT without paying interest.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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21 July 2009 agree

CA Ankit Verma

CA Ankit Verma (Querist)
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21 July 2009 Please also tell me
[1] Is it employer's responsibility to deduct TDS from an employee's salary ?

If Yes, then it is not an employee's fault and then why should she bear Interest on advance Tax payable on above case?

[2] In above case if the Net Taxable income after giving effect of "Deductions under Chapter VI-A" is below exemption limit is she still liable to pay Interest u/s 234 A,B,C on such advance Tax which she was liable even though she is not having Tax liablity on Net Income ?

Abhishek Mohta

Abhishek Mohta (Expert)
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22 July 2009 It is employer's duty to deduct tax and thus the salary expense on this account will not be allowed as deduction U/s 40(a) in the hands of the employer.

But the fact remains that ultimately tax is to be paid by her and thus she have to pay interest also.

If net taxable income is lower than the basic limit then no TDS and interest on the same comes into picture.

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